Blackhawk Network upsizes loan to $1.9 billion, adds 1% floor, firms OID at 98

By Paul A. Harris

Portland, Ore., Feb. 26 – Blackhawk Network Holdings Inc. upsized its five-year first-lien term loan B to $1.9 billion from $1.7 billion, according to a market source.

The spread remains unchanged at SOFR plus 500 basis points; however, that spread will now float atop a 1% floor. The deal had been announced without a floor.

Final discount talk is 98, at the rich end of the 97 to 98 talk.

Recommitments were due on Monday.

BofA Securities Inc. is the left lead arranger, with other syndicate names remaining to be identified.

Proceeds plus cash from the balance sheet will be used to refinance the company’s existing first-lien term loan B, to pay off the second-lien term loan, and to fund the acquisition of Tango Card.

Blackhawk Network is a Pleasanton, Calif.-based financial technology company and provider of payment solutions, including gift cards, incentive cards and other digital payment solutions. Tango Card is a digital rewards, e-gifting and payments platform.

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